Ali held dual nationalities as an Iraqi and Kuwaiti, having grown up in Kuwait and studied in Baghdad where he became a member of the ruling Baath party. Having held a lieutenant's position in the Kuwaiti army prior to the invasion, Ali was promoted to colonel in Baghdad and placed at the head of a 9-member puppet government during the invasion. A week later Kuwait was annexed by Iraq and Ali became Iraqi Deputy Prime Minister. After Desert Storm he was not heard of until 1998 when he fled to Norway through Turkey with his family under a fake name.

In 1993, Ali was sentenced in absentia to death by hanging for treason by the Kuwaiti government. In January 2000 he returned to Kuwait attempting to appeal the sentence. The court however, confirmed Ali guilty of treason again on May 3, 2000. In March 2001, his sentence was commuted to life in prison.